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Published: Tuesday, May 22, 2007, 17:46 [IST]

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New Delhi, May 22 (UNI) Claiming that the economy is heading for a nine per cent annual GDP growth and an unprecedented investment boom with price stability, the government today regretted that implementation leaves much to be desired obliterating the benefits of growth from reaching the poor.

"We have a long unfinished agenda to improve the quality of delivery systems for basic services such as education and health care," Prime Minister Manmohan Singh states in the Foreword to the "Report to the People," which highlights the achievements of the UPA government during the three years of its rule.

The Report highlights that the country recorded for the fifth year in succession a rate of economic growth of over 8.5 per cent and brings to light the fact that there has been an unprecedented increase in the rate of investment, which is at an all-time high of around 35 per cent of the National Income.

It claims that higher rates of investment and growth have helped generate employment and reduce poverty, but fails to mention the quantum of these parametres.

The Report says the impact of anti-inflationary measures was beginning to be felt and exudes confidence that the government will be able to keep the flames of inflation under control in future.

The rate of inflation has been hovering above 6.5 per cent in recent times, the Report says and lists the factors that have contributed to this rise. These are increase in demand for primary articles due to high GDP growth, supply side constraints due to stagnation in agricultural production on account of inadequate investments in this sector over the years, rise in international prices and difficulty in availability of commodities like wheat, pulses, milk, power, edible oils, crude oil and other primary commodities, such as ferrous and non-ferrous metals.

The biggest success of the government appears to be the high growth rate of the economy, with the average rate for the three years of the UPA government being 8,6 per cent. For the first time, the investment and savings rate have risen to 34 per cent and 32 per cent of the GDP respectively. The rate of growth of manufacturing sector output during 2006-07 has been over 11 per cent.